You will need a Tourist Dock and/or an Airport and a Hotel of some kind. This is so that you can get a tourist to be taken hostage.
Build some farms and switch their production to pineapples. Then build a cannery from the Industry section. Once this has production up and running you can then try to upset everyone. Don’t build good housing, issue nasty edicts and generally don’t help out.
[EDIT]Do not enable the Secret Police edict as they can resolve the situation before it develops.
The terrorists will then try to take a tourist hostage once enough people have become rebels.
Thanks to izret102.